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How to advertise on groupon

How to advertise on groupon

Wondering how to sell on Groupon? We’re glad you’re here! Groupon is more than just online deals. We offer a variety of customized marketing solutions to help you reach your business goals. Here’s some info to help you get started.

How to Sell on Groupon in 5 Easy Steps:

Step 1: Provide your info at groupon.com/merchant/signup

To sell on Groupon, first provide a few details about your business so we can reach out to share more info on how we can help your business grow. You may also want to take a look around the Groupon Merchant site to learn more about our solutions, such as:

Step 2: Speak with a Groupon representative or create your campaign using the Groupon Deal Builder

Our account reps can provide guidance on all of our solutions based on an analysis of your business’s goals and other promotions we’ve run. After you decide how many new customers you want to bring in, your assigned rep can help make sure that the offer you sell on Groupon meets your goals without exceeding your max capacity. You may also be able to create your own campaign instantly using the step-by-step Groupon Deal Builder.

Step 3: Prepare your business and staff

Before your campaign goes live, you will receive access to a preview of your offer, as well as helpful tips and tools to make sure you’re prepared when the first Groupon customer comes in. The days before your offer begins to sell on Groupon are also a great time to make sure your staff is up to speed on redemption methods and get the word out in your community. Posting on Facebook and Twitter, as well as spreading the word to your friends and family, can help generate buzz about your deal.

Step 4: Celebrate your campaign’s launch

On the day your campaign begins to sell on Groupon, log into your Groupon Merchant Center to keep an eye on your sales. You should also be ready to answer any customer service or scheduling questions that might come in by phone or email.

Step 5: Track your results using your Groupon Merchant Center

As you continue to sell on Groupon, we will provide you with insights about how well your offer is selling in your Groupon Merchant Center. You can view customer demographics such as age, gender, and location, as well as how much customers have spent beyond the value of the Groupon voucher. You’ll also be able to view, share, and respond to feedback from customers, track payments, and keep your business info up-to-date.

Groupon is an e-commerce marketplace that bridges local merchants and consumers by allowing them to post and buy deals online. But before you can create customized deal coupons that clients can purchase and redeem, you need to add your business to Groupon and become a Groupon Merchant. Here’s how you can go about adding your business to Groupon.

How to advertise on groupon

Step 1: Head Over to the Groupon Merchant Site

Go to the Groupon Works site, meant for merchants, and click on ‘Get Started’.

How to advertise on groupon

Step 2: Select the Nature of Your Deal

In this step, you will have to choose a type of deal which you’re planning to provide. You can choose from four available options: Local Deals, Getaways, Live, and Goods and Retail.

How to advertise on groupon

Step 3: Provide Some Basic Info

Once you choose your type of deal, you will need to provide some basic information about your business. You will be asked for your business’ name, phone number, mail ID, zip code, your personal name, and the number of locations your business has. You can also provide your business category here. When that’s done, click on ‘Continue’.

How to advertise on groupon

Step 4: Input Your Business’ Complete Address

In the next screen, you will be prompted to enter the complete address and website of your business. You can choose to enter a brief description about your business here as well.

How to advertise on groupon

Step 5: Select a Service

Now, based on your business details, you will be asked to select the type of service that you want to promote.

How to advertise on groupon

Step 6: Build Your Deal

Once you’ve selected a service, you will be taken to the Deal Builder page, where you can start putting together the details of the deal. This includes your deal price, details, some business info, deal quantity, and location. You can also preview your deal on the same page.

How to advertise on groupon

Step 7: Sign the Agreement

After you provide all the details and build your deal, including its launch date, you will be required to digitally sign an auto-generated agreement between your business and Groupon.

Kristi has worked with over 500 small businesses and has experience founding, growing, and selling her own digital marketing agency. Her expertise is highlighted throughout Fit Small Business in marketing, account management, and public relations content.

This article is part of a larger series on Search Engine Marketing.

Groupon is a platform that facilitates the sale of coupons (known as vouchers) offered primarily by local businesses. Groupon doesn’t charge upfront fees to advertise these deals; instead, they collect 50% of each sale. To create a deal on Groupon, simply choose your deal category, determine the discount, and add offer details.

How Groupon Works

Groupon is an online platform that manages the sale of discount vouchers (coupons) created by businesses selling products or services. The value for businesses advertising on Groupon is its captive customer base—49.3 million users worldwide. Plus, it’s easy to launch a deal; businesses navigate to Groupon’s website, fill in information about their business, input their deal discount and information, and select a launch date. Payments are issued every 30 days after a deal goes live.

The discount is a key part of Groupon advertising. Groupon suggests that the discount be between 40% and 90% off the regular price, but will offer more targeted recommendations after deal information is added to the platform. However, these are only suggestions; merchants can decide their own discounts based on the cost of the product itself, cost of delivery, and other deal expenses.

After a deal goes live, Groupon will manage the sale of vouchers to its members. When a member presents a voucher to a business—either in person or online—the business is obligated to provide the product/service advertised on Groupon at the stated price. Every 30 days the deal is live, Groupon will send payment for total sales, minus a 50% fee, to the business.

When a business showcases an attractive Groupon deal with a competitive discount, they can expect to see an increase in traffic to their website and in many cases, foot traffic to their business location, which is why it is also a search engine marketing strategy. However, while it’s possible for merchants successfully turn Groupon members into loyal customers of their business, some complain that retention is hard and that customers are only shopping for a deal, making them tough to convert.

Who Groupon Advertising Is Best For

While almost any business can use Groupon, it best serves those that are local, offer consumer-facing products or services that typically cost less than $100, and need to create deals for a specific product/service or time of day. Groupon advertising also serves entertainment venues that need to fill seats for performances and travel companies offering transportation discounts.

Groupon is best suited for:

  • Local companies – While anyone can sell products online, local companies typically depend on physical locations for sales. By using Groupon, these companies can easily attract nearby consumers who are able to redeem their vouchers in person.
  • Companies with low-cost products – Groupon deals are successful when there is sufficient sales volume to produce profit for the advertising business. That’s only possible when they can afford to produce a large volume of lower-cost products.
  • Service companies – Because Groupon deals can be set up with specific redemption days and times, they serve service businesses that occasionally see slower periods of business—like restaurants, activity centers, and spas.
  • Entertainment venues – Venue managers often benefit from Groupon by easily selling discount performance tickets that haven’t sold by the day of the event.
  • Travel companies – In order to fill up resorts, hotel rooms, and airplane seats, travel companies will frequently offer discounts tickets and reservations via Groupon. However, Groupon handles these discounts differently than the other types on this list, so we won’t get into them in this article.

While many local businesses experience success advertising on Groupon, be certain that yours can handle the influx of new customers from Groupon advertising. To help manage this new traffic, consider adding fine print to your deal requiring voucher-holders to make reservations or alert you before redeeming their voucher.

How to advertise on groupon

Groupon loves to delight customers by helping them discover deals on great things to eat, see, do, and buy in their own cities. But just as close to Groupon’s collective heart is helping merchants connect with new customers. Since we know that running a business keeps you busy enough, we make it easy to advertise on Groupon. Just follow these five simple steps.

Here’s how to advertise on Groupon:

1. Introduce yourself at groupon.com/merchant/get-started.

To take the first step to advertise on Groupon, fill out this quick online form. You may also want to check out groupon.com/merchant to learn more about our comprehensive suite of marketing solutions, including:

2. Use Groupon’s self-service Deal Builder or speak with a Groupon specialist to create a campaign that works for your business.

After you provide your information, you may be able to start creating your own offer right away using the Groupon Deal Builder, depending on your business type. If not, a rep will follow up with you shortly to help you advertise on Groupon. Let us know how many new customers you want to bring in, and we’ll help ensure that your offer meets your business’s needs without exceeding your capacity. Both the Groupon Deal Builder and our account reps can provide helpful guidance based on extensive analysis of past deals, your local market, and other businesses that are similar to yours.

3. Get ready to meet your new customers by reviewing the campaign prep materials Groupon provides and sharing them with your staff.

As the launch of your campaign approaches, your rep will provide helpful tips and tools to make sure you’re prepared when the first Groupon customer comes through your doors. The days leading up to your feature are also a great time to make sure your staff is up to speed on redemption methods and get the word out in your community. Posting on your social channels and spreading the word to friends, family, and your existing fans can help generate buzz about your deal.

4. Redeem Groupons and maximize your promotion using our intuitive merchant tools and app.

Once your campaign launches in our marketplace, use our online tools and the Groupon Merchant app for iOS and Android to help you get the most out of your Groupon campaign. These tools make it easy to redeem Groupons by scanning the voucher’s barcode or simply entering the customer’s name.

In addition to telling our customers all about you, Groupon can also tell you about your customers. To help you track your campaign’s success, your online Merchant Center organizes pertinent information such as sales data, redemption stats, and customer feedback all in one place. The Merchant Center also gives you insight into customer demographics such as age, gender, and location—which you can use to tailor your non-Groupon marketing efforts—as well as how much is spent beyond the value of Groupon vouchers. Plus, you’ll be able to view, share, and respond to direct feedback from customers so you know what is and isn’t working.

5. Make money and create new fans of your business.

Most Groupon merchants get paid in bimonthly installments with a small percentage held back to account for potential refund requests, but payment terms may differ based on the specific marketing solutions you choose. In addition to the revenue you’ll bring in from your campaign sales, Groupon helps you make money by connecting you with customers who often spend more than the Groupon’s value and return for repeat visits.

So that’s how to advertise on Groupon in a nutshell. We’d be happy to answer any questions you may have. Simply provide your info and we’ll be in touch!

wikiHow is a “wiki,” similar to Wikipedia, which means that many of our articles are co-written by multiple authors. To create this article, 10 people, some anonymous, worked to edit and improve it over time.

This article has been viewed 228,834 times.

Groupon is a deal website that provides printable or digital vouchers for daily deals offered by local businesses. The site allows merchants in various markets around the world to open an online store and post their daily deals via the site. This article will teach you how to advertise on Groupon.

How to advertise on groupon

  • View the testimonials and see how Groupon can help your business.

How to advertise on groupon

How to advertise on groupon

  • Personal information. This will be the primary contact person with your company for Groupon’s sales and marketing team. Asterisked fields are required.
  • Business information. This is just the basic contact information. Again, asterisked fields are required.
  • Business details. This area is somewhat variable. The first menu is a broad overview of industries that would apply to your business:
  • Business details, extended. Based on what you choose in the first menu, and additional menu is offered for more specific information about your business. For this example, we chose Service as our primary business, which resulted in the following secondary menu:
  • The last section, “How can we help,” gives the Groupon sales and marketing teams an idea about what types of offers would best suit your goals and business.
  • When you are satisfied that the form is complete and reflects both your business and your goals, click the Submit button at the bottom of the page. Groupon’s automated response page will follow:

How to advertise on groupon

How to advertise on groupon

How to advertise on groupon

  • Consult. Work with your Groupon representative to create a custom offer that meets your business needs.
  • Plan. Create an action plan to help your staff deal with the rush of new customers.
  • Launch. Your deal will be featured for one day on the main Groupon site. This is the page that Groupon subscribers in your locale will see.
  • Connect. Customers buy the deal, and receive a voucher in return. They bring this with them when they come to enjoy your offering.
  • Redeem. You scan the voucher code they bring in, enter it manually into the Merchant Center, or write it down for later entry.
  • Payment. According to Groupon, most business partners get paid in thirds—33% after 7 to 10 days, 33% after 1 month, and 34% after 2 months.
  • Visit the What It Looks Like page to see a breakdown of each part of your deal page.

How to advertise on groupon

  • Review the steps above for The Featured Deal. The significant difference is how the deal is launched. Rather than simply appearing on the Groupon website, the deal is pushed to the mobile app on your potential customer’s smart phone. Rather than the printed voucher many may bring using the Featured Deal, the voucher will be on their phone.
  • Visit the What It Looks Like page to see how a deal is structured on a smart phone.

How to advertise on groupon

How to advertise on groupon

While there is no direct charge to have a deal on Groupon, or any other deal site in general, your profit will be significantly reduced for voucher-based sales. Rather than think about this as lost revenue, put it in your advertising and marketing budget, where it makes sense. Consider this: if you buy an advertisement in the newspaper, radio, or local TV station, it will cost $X—no matter how many people see it or use it.

Traffic from that form of advertising is very hard to track. You may see a 10% increase the weekend of the ad, but that could just as easily be the great weather. On the other hand, if you have a 10% increase and that’s largely people waving a Groupon voucher, you know exactly how effective that campaign has been, and they are paying for part of your advertising bill.

How to advertise on groupon

For small businesses, specifically in the hospitality industry, local advertising presents many problems. Many of these small business owners are not experience with advertising techniques and struggle to drive customers to their business.

Experienced small business owners know of the marketplaces they must be apart of to succeed in their communities, think Angie’s List, Yelp, and Groupon.

In this guide, we’ll cover everything Groupon advertising, including:

What is Groupon and How Does It Work?

Groupon, founded in 2008, is a website that offers consumers deals and discounts for just about any type of business you can think of, including restaurants, spas, and retail stores.

Groupon acts as an advertising platform by allowing businesses to promote deals in the form of vouchers and cashback through linked-credit cards. These deals are limited in terms of both time and quantity, and Groupon collects around 50% of each purchase.

How to advertise on groupon

Groupon started off offering deals in the form of digital vouchers and has more recently started incorporating card-linking, which lets customers receive cashback after using a specific, linked credit card to redeem a Groupon deal. This allows customers to take advantage of the same deal multiple times.

The platform makes it easy for companies to create customized deals and makes them available to their huge user base of 53 million active users worldwide . Groupon suggests customized recommendations for how big a discount should be, usually between 40 to 90 percent off the full price. Once a deal goes live, businesses receive their payouts every 30 days.

What Types of Businesses Should Advertise on Groupon?

Business looking to list deals on Groupon would do best to think of it as an opportunity to increase traffic and attract new customers rather than a vehicle for increasing revenue right off the bat.

Because they do take about half of each purchase, Groupon really makes sense for smaller, local businesses with relatively inexpensive goods or services that could benefit from additional marketing or public awareness. Some examples might be companies like performance venues, travel agents, or spas.

Above: Example of the many categories for local advertising on Groupon.

How Much Does It Cost to Advertise on Groupon?

There is no upfront cost to advertise on Groupon. However, the company takes a share of the revenue earned when its users redeem a coupon through the marketplace. Adding to this, Groupon requires companies to have discounts of a certain percent.

A potential scenario is Groupon requiring a business to have 50 percent off coupons – and then take 50% of the earnings from the sale. This leaves the business with 25 percent of the original sticker price of an item or service.

Pros of Groupon Advertising

1. It Raises Awareness in Local Markets

Possibly the biggest “pro” of listing your business on Groupon is the influx of potential customers who will have the opportunity to come into contact with your business for the first time.

2. Attract New Customers

Because Groupon deals offer customers a much lower-than-typical price point, they are great for attracting and converting new customers. Because they’re getting such a great deal, they may be more inclined to add some full-priced items to their cart as well.

3. Make Room In Your Inventory

Listing deals on slow-selling or soon to be discontinued products to make some room in your business’ inventory is a great way to cut down on profit loss.

4. Supplement Your Revenue Stream

While advertising on Groupon is not necessarily viable as your business’ only advertising effort, it is a great way to give your regular revenue stream a little bit of padding.

5. Increased Foot and Website Traffic

Because of Groupon’s large user base, listing deals on Groupon can bring in plenty of both website and foot traffic.

6. Unused Groupon Vouchers are Pure Profit

About 30% of customers who purchase vouchers don’t actually end up using them, so while Groupon still takes 50%, the profit you do receive comes without any actual costs to account for.

7. Customers May Purchase More

Customers may be inclined to add in some regular priced items to their purchase since they just got such a great deal, etc.

Cons of Groupon Advertising

1. Many Consumers Won’t Stick Around

Many times, budget shoppers aren’t looking to build a relationship with a brand, so they will either only make a single purchase, or only purchase when a Groupon deal comes around. This can mean low overall return rates throughout a customer’s life cycle.

2. Making the Wrong Impression with Customers

Depending on the situation, a customer may even translate the discounts offered through Groupon to their idea of the “worth” of your business’ goods or services. This could be bad news for your brand’s image if that idea sticks.

3. Repeat Customers Aren’t Likely

Only about 19% of Groupon customers are likely to return, depending on the type of product or service. Depending on your needs, this might not make Groupon the most viable solution for growing your customer base.

4. Low Profit Margin

Groupon takes 50% of profits from each purpose, so if you’re not really in need of an advertising boost, another advertising solution like media advertising might be more effective.

Kristi has worked with over 500 small businesses and has experience founding, growing, and selling her own digital marketing agency. Her expertise is highlighted throughout Fit Small Business in marketing, account management, and public relations content.

This article is part of a larger series on Search Engine Marketing.

Groupon is a platform that facilitates the sale of coupons (known as vouchers) offered primarily by local businesses. Groupon doesn’t charge upfront fees to advertise these deals; instead, they collect 50% of each sale. To create a deal on Groupon, simply choose your deal category, determine the discount, and add offer details.

How Groupon Works

Groupon is an online platform that manages the sale of discount vouchers (coupons) created by businesses selling products or services. The value for businesses advertising on Groupon is its captive customer base—49.3 million users worldwide. Plus, it’s easy to launch a deal; businesses navigate to Groupon’s website, fill in information about their business, input their deal discount and information, and select a launch date. Payments are issued every 30 days after a deal goes live.

The discount is a key part of Groupon advertising. Groupon suggests that the discount be between 40% and 90% off the regular price, but will offer more targeted recommendations after deal information is added to the platform. However, these are only suggestions; merchants can decide their own discounts based on the cost of the product itself, cost of delivery, and other deal expenses.

After a deal goes live, Groupon will manage the sale of vouchers to its members. When a member presents a voucher to a business—either in person or online—the business is obligated to provide the product/service advertised on Groupon at the stated price. Every 30 days the deal is live, Groupon will send payment for total sales, minus a 50% fee, to the business.

When a business showcases an attractive Groupon deal with a competitive discount, they can expect to see an increase in traffic to their website and in many cases, foot traffic to their business location, which is why it is also a search engine marketing strategy. However, while it’s possible for merchants successfully turn Groupon members into loyal customers of their business, some complain that retention is hard and that customers are only shopping for a deal, making them tough to convert.

Who Groupon Advertising Is Best For

While almost any business can use Groupon, it best serves those that are local, offer consumer-facing products or services that typically cost less than $100, and need to create deals for a specific product/service or time of day. Groupon advertising also serves entertainment venues that need to fill seats for performances and travel companies offering transportation discounts.

Groupon is best suited for:

  • Local companies – While anyone can sell products online, local companies typically depend on physical locations for sales. By using Groupon, these companies can easily attract nearby consumers who are able to redeem their vouchers in person.
  • Companies with low-cost products – Groupon deals are successful when there is sufficient sales volume to produce profit for the advertising business. That’s only possible when they can afford to produce a large volume of lower-cost products.
  • Service companies – Because Groupon deals can be set up with specific redemption days and times, they serve service businesses that occasionally see slower periods of business—like restaurants, activity centers, and spas.
  • Entertainment venues – Venue managers often benefit from Groupon by easily selling discount performance tickets that haven’t sold by the day of the event.
  • Travel companies – In order to fill up resorts, hotel rooms, and airplane seats, travel companies will frequently offer discounts tickets and reservations via Groupon. However, Groupon handles these discounts differently than the other types on this list, so we won’t get into them in this article.

While many local businesses experience success advertising on Groupon, be certain that yours can handle the influx of new customers from Groupon advertising. To help manage this new traffic, consider adding fine print to your deal requiring voucher-holders to make reservations or alert you before redeeming their voucher.

How to advertise on groupon

The odds are that if you’ve been scouring the web for a deal, you’ve come across Groupon. In recent years, Groupon has become a touchstone for people who are looking for great deals on quality services, products, and more. And advertising your business on Groupon can put you in the millions of people who use the platform each day.

I believe that Groupon is one of the least utilized advertising platforms around. Using this e-commerce platform means that you won’t have to compete as much with competitors for advertising real estate. Utilizing the platform efficient can help attract repeat customers, increase brand recognition, and make more profit along the way.

So, save some paper and embrace the era of digital couponing we’re all living through right now. Here’s how you can advertise your business or brand on Groupon.

between 18- and 44-years-old. Men and women appear to use the platform in similar numbers, meaning that businesses can expect advertisement and deals that are inclusive to all genders to do best.

Using Groupon couldn’t be easier: both merchants and customers create profiles geared toward their interests or businesses and can choose to shop or advertise throughout the e-commerce platform. The ease of use and access to Groupon has only helped the commerce company not only grow in popularity but made it a viable place for other business to market their products, services, etc..

By leveraging Groupon’s broad demographic appeal, you can establish a strong presence on the platform that directly affects your bottom lines.

www.groupon.com/login, a login page will pop up that will request the following criteria:

  • Your legal first and last name
  • Your business or personal email address
  • Your desired Password
  • Choose whether or not you want to receive email newsletters from Groupon
  • Choose whether or not you want the device you’re on to remember your inputs

After signing up, you’ll have the ability to do deep dives in local, national, or international markets. It’s worth noting that more than 70 percent of all Groupon sales remain bought by locals seeking deals on products and services in their neighborhoods.

Groupon Merchant Blog, which we’ll get into later, has many accounts of restaurants experiencing more traffic from using Groupon. From offering one-time deals on certain dishes to revolving discounted specials, Groupon can help grow your business traffic.

One of the more exciting perks of your restaurant being a Groupon Merchant is that you can offer Loyalty Rewards programs. Much like in other iterations, these loyalty programs can help attract long-time customers and bring attention to your eatery.

There needs to be a reason for your customers to want a loyalty program through Groupon. Consider offering deals and incentives to customers to sign up for loyalty rewards to receive. Recently, The National Restaurant News found that people who have a Loyalty Program to a specific restaurant will spend almost 40 percent more (on average) when they’re closer to receiving an award.

Even if you don’t choose to start a Loyalty Program for your restaurant, you can continue to offer deals. Research shows that people are many times more likely to spend more on a more expensive meal if they believe they’re getting it cheaper than usual.

Advertising on Groupon for your restaurant is a win-win: Your bottom lines and customer traffic grow, and your eaters leave having saved on a good meal.

How to Advertise on Groupon for Health and Beauty

How to advertise on groupon

Nail and hair salons, spas, massage companies, and more health and beauty businesses can all benefit by leveraging Groupon to expand their outreach. Research shows that even during times of recession, Americans tend to continue to spend the same on health and beauty products and services. But Groupon can do more than help you get more clients.

Groupon allows Groupon Merchants to streamline appointments by simplifying the booking process. Using “Groupon Appointments,” you can allow customers to request appointments after they purchase a ticket, voucher, or digital reservation card for your business. Your “Groupon Calendar” will immediately be updated to accommodate the customer, and that specific time will be unable to be booked that day. This streamlined process also eliminates the risk of double booking from happening.

Also, you can help boost traffic for our other online health and beauty services by cross-linking to your “Groupon Page.” You’ll have the option to link to your main business website through both your Groupon Page and advertisement, itself. By creating easy access to your main website, you can introduce new and old customers to services that are available, but not through Groupon.

Groupon is an e-commerce marketplace that bridges local merchants and consumers by allowing them to post and buy deals online. But before you can create customized deal coupons that clients can purchase and redeem, you need to add your business to Groupon and become a Groupon Merchant. Here’s how you can go about adding your business to Groupon.

How to advertise on groupon

Step 1: Head Over to the Groupon Merchant Site

Go to the Groupon Works site, meant for merchants, and click on ‘Get Started’.

How to advertise on groupon

Step 2: Select the Nature of Your Deal

In this step, you will have to choose a type of deal which you’re planning to provide. You can choose from four available options: Local Deals, Getaways, Live, and Goods and Retail.

How to advertise on groupon

Step 3: Provide Some Basic Info

Once you choose your type of deal, you will need to provide some basic information about your business. You will be asked for your business’ name, phone number, mail ID, zip code, your personal name, and the number of locations your business has. You can also provide your business category here. When that’s done, click on ‘Continue’.

How to advertise on groupon

Step 4: Input Your Business’ Complete Address

In the next screen, you will be prompted to enter the complete address and website of your business. You can choose to enter a brief description about your business here as well.

How to advertise on groupon

Step 5: Select a Service

Now, based on your business details, you will be asked to select the type of service that you want to promote.

How to advertise on groupon

Step 6: Build Your Deal

Once you’ve selected a service, you will be taken to the Deal Builder page, where you can start putting together the details of the deal. This includes your deal price, details, some business info, deal quantity, and location. You can also preview your deal on the same page.

How to advertise on groupon

Step 7: Sign the Agreement

After you provide all the details and build your deal, including its launch date, you will be required to digitally sign an auto-generated agreement between your business and Groupon.